SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 3, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number 0-3698
SILICONIX INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 94-1527868
(State or other jurisdiction (I.R.S. Employer
of incorporation Identification No.)
or organization)
2201 Laurelwood Road, Santa Clara, California 95054
(Address of principal executive offices)
Registrant's telephone number including area code (408) 988-8000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |X| No |_|
Indicate the number of shares outstanding of each of the registrant's
classes of common stock:
Common stock, $0.01 par value -- 9,959,680 outstanding shares as of
November 12, 1999.
1
<PAGE>
SILICONIX INCORPORATED
TABLE OF CONTENTS TO FORM 10-Q
Part I. Financial Information Page No.
Item 1 Financial Statements
Consolidated statements of operations for the three months and
nine months ended October 3, 1999 and September 27, 1998. 3
Consolidated balance sheets as
of October 3, 1999 and December 31, 1998 4
Consolidated statements of cash flows for the nine months
ended October 3, 1999 and September 27, 1998 5
Notes to consolidated financial statements 6
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II. Other Information
Signature 13
2
<PAGE>
SILICONIX INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except per share amounts) Three Months Ended Nine Months Ended
October 3, September 27, October 3, September 27,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 101,328 $ 70,118 $ 273,176 $ 205,739
Cost of sales 58,422 45,126 164,271 134,545
--------- --------- --------- ---------
Gross profit 42,906 24,992 108,905 71,194
Operating expenses:
Research and development 4,237 3,972 12,244 12,832
Selling, marketing, and administration 12,490 13,202 36,086 42,993
Goodwill amortization 114 126 342 229
Restructuring -- -- -- 19,751
Operating income (loss) 26,065 7,692 60,233 (4,611)
Interest expense (138) (1,090) (867) (2,372)
Other income (expense) - net 633 (580) (396) (1,662)
--------- --------- --------- ---------
Income (loss) before taxes and minority interest 26,560 6,022 58,970 (8,645)
Income taxes (7,687) (2,087) (17,054) 3,066
Minority interest in income of consolidated subsidiary (55) (56) (166) (114)
--------- --------- --------- ---------
Net income (loss) $ 18,818 $ 3,879 $ 41,750 $ (5,693)
========= ========= ========= =========
Net income (loss) per share (basic and diluted) $ 1.89 $ .39 $ 4.19 $ (.57)
========= ========= ========= =========
Shares used to compute earnings per share 9,960 9,960 9,960 9,960
========= ========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
3
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SILICONIX INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except share data) October 3, December 31,
1999 1998
--------- ---------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 22,194 $ 37,694
Accounts receivable, less allowances 52,870 35,559
Accounts receivable from affiliates 66,713 9,917
Inventories 50,141 49,421
Other current assets 6,490 8,867
Deferred income taxes 15,182 15,182
--------- ---------
Total current assets 213,590 156,640
--------- ---------
Property, plant, and equipment, at cost:
Land 1,715 1,576
Buildings and improvements 47,814 47,962
Machinery and equipment 286,843 266,525
--------- ---------
336,372 316,063
Less accumulated depreciation 187,856 165,677
--------- ---------
Net property, plant, and equipment 148,516 150,386
Goodwill 8,476 8,820
Other assets 924 1,413
--------- ---------
Total assets $ 371,506 $ 317,259
--------- ---------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 16,129 $ 23,947
Accounts payable to affiliates 78,258 29,192
Accrued payroll and related compensation 11,023 11,694
Accrued restructuring charge 3,046 5,352
Accrued liabilities 46,512 32,803
--------- ---------
Total current liabilities 154,968 102,988
--------- ---------
Long-term related party debt 10,570 50,570
Long-term debt, less current portion 1,598 1,221
Deferred income taxes 9,170 9,170
Minority interest 3,268 3,170
--------- ---------
Total liabilities 179,574 167,119
--------- ---------
Commitment and contingencies
Shareholders' equity
Common stock 100 100
Additional paid-in-capital 59,552 59,536
Retained earnings 133,034 91,285
Accumulated other comprehensive loss (754) (781)
--------- ---------
Total shareholders' equity 191,932 150,140
--------- ---------
Total liabilities and shareholders' equity $ 371,506 $ 317,259
========= =========
</TABLE>
See accompanying Notes to Consolidated Financial Statements
4
<PAGE>
SILICONIX INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
October 3, September 27,
(In thousands) 1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 41,750 $ (5,693)
Adjustments to reconcile net income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 22,523 19,607
Deferred income taxes -- (5,681)
Undistributed earnings from joint venture -- (970)
Payment of pension benefits -- (96)
Restructuring (2,306) 12,530
Other non-cash expenses 377 351
Changes in operating assets and liabilities:
Accounts receivable (17,311) 19,641
Accounts receivable from affiliates (56,797) (802)
Inventories (720) (5,636)
Other assets 2,377 1,344
Minority Interest 67 115
Accounts payable (7,818) (13,808)
Accounts payable to affiliates 42,847 10,800
Accrued liabilities 12,759 (1,954)
-------- --------
Net cash provided by operating activities 37,748 29,748
-------- --------
Cash flows from investing activities:
Purchase of property, plant, and equipment (20,396) (23,581)
Retirement of property, plant, and equipment 87 --
Sale of Asia Subsidiaries 6,152 --
Cash acquired from purchase of business -- 977
Short-term investment with affiliate -- 8,586
Sale of other assets 489 111
-------- --------
Net cash used in investing activities (13,668) (13,907)
-------- --------
Cash flows from financing activities:
Repayment of long-term debt (40,000) --
Proceeds from long-term debt 377
Repayment of debt -- (3,117)
Proceeds from related party debt -- 5,000
Proceeds from restricted common stock 16 --
-------- --------
Net cash provided (used) in financing activities (39,607) 1,883
-------- --------
Effect of exchange rate changes on cash and cash equivalents 27 4
-------- --------
Net increase (decrease) in cash and cash equivalents (15,500) 17,728
Cash and cash equivalents:
Beginning of period 37,694 10,249
-------- --------
End of period $ 22,194 $ 27,977
======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements
5
<PAGE>
SILICONIX INCORPORATED
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.
In the opinion of the management of the Company, the consolidated
financial statements appearing herein contain all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of the results
for, and as of the end of, the periods indicated therein. These statements
should be read in conjunction with the Company's December 31, 1998 consolidated
financial statements and notes thereto. The results of operations for the first
nine months of 1999 are not necessarily indicative of the results to be expected
for the full year.
Note 2. Inventories
The components of inventory consist of the following:
October 3, December 31,
1999 1998
--------- ----------
(In thousands)
Finished goods $ 7,938 $ 10,627
Work-in-process 36,874 32,348
Raw materials 5,329 6,446
--------- ----------
$ 50,141 $ 49,421
--------- ----------
Note 3. Restructuring Expense
The Company incurred a pre-tax restructuring charge of $19.8 million
relating to the acquisition on March 2, 1998 of the 80.4% interest in the
Company by Vishay. Of the total, approximately $12.6 million related to employee
termination costs covering seven key executives and 72 technical, production,
and administrative employees. The remaining $7.2 million restructuring charge
relates to provisions for certain assets, contract cancellations, and other
expenses. As of October 3, 1999, 77 employees have been terminated and the
Company settled $11.6 million in costs, of which $9.7 million were paid and
$1.9 million were written off. In addition, $5.2 million has been charged
against the restructuring liability for the write-down of certain assets and
other expenses. At October 3, 1999, restructuring charges of $3.0 million remain
accrued, primarily relating to employee termination costs and contract
cancellations. The Company anticipates that it will substantially complete the
remainder of its restructuring by the end of 1999.
6
<PAGE>
Note 4. Contingencies
The Company is party to two environmental proceedings. The first
involves property that the Company vacated in 1972. The California Regional
Water Quality Board ("RWQCB") issued a cleanup and abatement order to both the
Company and the current owner of the property. The Company subsequently reached
a settlement of this matter with the current owner in which the current owner
indemnifies the Company against any liability that may arise out of any
governmental agency actions brought for environmental cleanup of the site,
including liability arising out of the current cleanup and abatement order. The
second proceeding involves the Company's current facility in Santa Clara. The
RWQCB issued a clean up and abatement order based on the discovery of
contamination of both the soil and the groundwater on the property by certain
chemical solvents. The Company is currently engaged in certain remedial action
and has accrued $750,000 as its best estimate of future costs related to this
matter.
In management's opinion, based on discussion with legal counsel and
other considerations, the ultimate resolution of the above-mentioned matters are
not expected to have a material adverse effect on the Company's consolidated
financial condition or results of operations.
The Company is engaged in discussions with various parties regarding
patent licensing and cross patent licensing issues. In the opinion of
management, the outcome of these discussions will not have a material adverse
effect on the Company's consolidated financial condition or overall trends in
the results of operations.
Note 5. Recently Issued Accounting Pronouncements
In June 1998, the FASB released SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities." SFAS No. 133 establishes new
standards for the accounting and reporting for derivative instruments and
hedging activities. SFAS No. 133 requires that an entity recognizes all
derivatives as either assets or liabilities in the statement of financial
position and measures those instruments at fair value. The statement is
effective for all fiscal quarters of fiscal years beginning after June 15, 2000.
The Company is still in the process of assessing the impact that SFAS No. 133
will have on its financial statements.
Note 6. Comprehensive Income
As of January 1, 1998, the Company adopted the Statement of Financial
Accounting Standard No. 130, "Reporting Comprehensive Income". SFAS No. 130
establishes new rules for the reporting and display of comprehensive income and
its components; however adoption of this statement had no impact on the
Company's net income or shareholders' equity. SFAS No. 130 requires foreign
currency translation adjustments to be included in other comprehensive income.
Prior to adoption, unrealized gains or losses related to foreign currency
translation adjustments were reported as a separate component of shareholders'
equity.
The following are the components of comprehensive income:
<TABLE>
<CAPTION>
(In thousands) Three Months Ended Nine Months Ended
October 3, September 27, October 3, September 27,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net income(loss) $ 18,818 $ 3,879 $ 41,750 $ (5,693)
Foreign currency translation adjustment 34 (143) 27 (118)
Comprehensive income(loss) 18,852 3,736 41,777 (5,811)
The component of accumulated
Comprehensive income, is as follows:
Foreign currency translation adjustment $ (754) $ (697) $ (754) $ (697)
</TABLE>
7
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Note 7. Segment Reporting
The Company is engaged primarily in the designing, marketing, and
manufacturing of power and analog semiconductor products. The Company is
organized into three operating segments which due to their inter-dependencies,
similar long-term economic characteristics, shared production processes and
distribution channels have been aggregated to one reportable operating segment
under the criteria of Statement of Financial Accounting Standards ("SFAS") No.
131, "Disclosures about Segments of an Enterprise and Related Information".
Note 8. Foreign Exchange Forward Contracts
In September 1999, the Company entered into foreign currency forward
exchange contracts to manage exposure related to certain foreign currency
commitments and balance sheet positions. Foreign currency forward exchange
contracts designated as effective hedges of firm commitments are treated as
hedges for accounting purposes. Gains and losses related to qualified accounting
hedges of firm commitments are deferred and recognized in income when the hedged
transaction occurs. At October 3, 1999 the notional amount of outstanding
foreign currency forward exchange contracts was $15,433,000. All of the total
outstanding contracts at October 3, 1999 were to hedge yen denominated
commitments from customers in Japan.
Note 9. Sale of Asia Pacific Subsidiaries
In May 1999, Vishay Asia Pte. Ltd. (VAPL), a wholly owned subsidiary of
Siliconix, entered into a sale and purchase agreement with Vishay
Intertechnology Pte Ltd. (VIAPL), a wholly owned subsidiary of Vishay. VAPL
transferred the business and benefit of all current contracts and engagements of
VAPL and all other assets and liabilities to VIAPL for the cash sum of $5.8
million. In addition, Siliconix, Inc. sold its ownership interest in Vishay
Japan KK to VIAPL for cash of $0.4 million. The transaction resulted in no gain
or loss to Siliconix and had no impact on operating income. Receivables and
payables which historically have been eliminated in consolidation as
intercompany balances now are reflected as receivables and payables from the
affiliated Vishay entities.
8
<PAGE>
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Overview
Siliconix (the "Company") is engaged in designing, manufacturing, and
marketing power and analog semiconductor products. The Company is a leading
manufacturer of Power MOSFETs, Power ICs, and analog Signal Processing devices
for computers, cell phones, fixed communication networks, automobiles and other
electronic systems. Power MOSFET is the producer of low-voltage, surface-mount
Power MOSFET products primarily used for the communication, computer, and
automotive markets. Power IC focuses on Power Integrated Circuits used in
communication and data storage applications. Signal Processing manufactures a
wide array of commodity products such as Analog Switches, Low Power MOSFETs, and
JFETs for industrial and consumer markets.
Siliconix is a global semiconductor manufacturing company with 1998
worldwide sales of $282.3 million. The Company manufactures power products in a
Class-1 six inch wafer fab in Santa Clara, California and through subcontracted
wafer fabrication in Itzehoe, Germany. Analog switches and multiplexer products
are fabricated in the four-inch wafer fab in Santa Clara, California. A
subcontractor in Beijing, China manufactures the Company's small signal
transistor products. The Company also owns assembly and test facilities in
Kaoshiung, Taiwan and Shanghai, China. These Company owned facilities are
supported by additional manufacturing capacity at subcontractors in Germany,
Philippines, China and the United States. The Company's combination of internal
and external manufacturing capacity gives it a truly global manufacturing
presence, allowing the Company to respond quickly to changes in customer demand
as well as allowing the Company added flexibility during economic downturns. The
Company will continue to rely heavily on subcontractors in its manufacturing
strategy as it allows Siliconix to take advantage of incremental capacity
without the burden of a significant increase in the fixed cost infrastructure.
Results of Operations
Revenues for the third quarter of 1999 were a record of $101.3 million
compared to $70.1 for the third quarter of 1998. Revenues for the first nine
months of 1999 were $273.2 million, compared to $205.7 million in the first nine
months of 1998. The significant increase in revenues is mainly due to increased
sales in all geographic regions due to increased demand in the telecommunication
and computer market segments. The Asia Pacific region has experienced the
largest increase in revenues due to the recovery of the Asian economy as well as
strong demand out of our major OEM's in the region. The backlog for the fourth
quarter remains strong as the Company's focus on and strategic position in the
portable communication and computer markets has positioned us well in these fast
growing market segments.
Gross profit for the first nine months of 1999 was 40%, compared to 35%
in the first nine months of 1998. Gross Profit for the third quarter was 42%
compared with 36% for the same quarter of 1998. The increase in margins was
driven primarily by manufacturing efficiencies gained from full utilization of
the Company's existing manufacturing capacity, raw material price reductions, as
well as a product mix shift during the first part of 1999 to smaller, more
profitable products. While the Company is continuing to experience pricing
pressures for its products, the level of price decline has slowed down due to
strong demand for the Company's higher margin products as well as short-term
capacity constraints. Nevertheless, in an effort to preserve the Company's
operating results in light of continued downward pressure on prices, the Company
will continue to aggressively implement its cost reduction programs as well as
focus its investment in new products, which tend to have higher margins.
Research and development expenses decreased to $12.2 million or 4% of
sales in the first nine months of 1999 from $12.8 million or 6% of sales for the
same period of 1998. The decrease was the result of a $0.8 million one-time
charge in the first half of 1998 from Daimler-Benz for prior joint development
9
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projects. For the third quarter of 1999, research and development was $4.2
million compared to $4.0 million for same quarter of 1998. The 1999 investments
in research and development will allow the Company to release more new products
than 1998. The Company believes it is critical to continue to make significant
investments in research and development to ensure the availability of innovative
technology that meets the current and future requirements of its customers.
Accordingly, the Company expects in future years to continue to devote
substantial resources to research and development programs.
Selling, marketing, and administration expenses decreased to $36.1
million or 13% of sales in the first nine months of 1999 from $43.0 million or
21% of sales for the same period of 1998. The Company has continued to benefit
from its restructuring plan implemented in 1998. For the third quarter of 1999,
selling, marketing, and administration expenses were $12.5 million compared to
$13.2 million for same quarter of 1998. While the Company's selling, marketing
and administration expenses are expected to rise over the year to support the
Company's increasing revenue base, the 1999 expenses are expected to remain
significantly below the 1998 level.
The Company incurred a pre-tax restructuring charge of $19.8 million
relating to the acquisition on March 2, 1998 of the 80.4% interest in the
Company by Vishay. Of the total, approximately $12.6 million related to employee
termination costs covering seven key executives and 72 technical, production,
and administrative employees. The remaining $7.2 million restructuring charge
relates to provisions for certain assets, contract cancellations, and other
expenses. As of April 4, 1999, 77 employees have been terminated and the Company
settled $11.6 million in costs, of which, $9.6 million were paid and $1.9
million were written off. In addition, $5.2 million has been charged against the
restructuring liability for the write-down of certain assets and other expenses.
At October 3, 1999, restructuring charges of $3.0 million remain accrued,
primarily relating to employee termination costs and contract cancellations. The
Company anticipates that it will substantially complete the remainder of its
restructuring by the end of 1999.
In May 1999, Vishay Asia Pte. Ltd. (VAPL), a wholly owned subsidiary of
Siliconix, entered into a sale and purchase agreement with Vishay
Intertechnology Pte Ltd. (VIAPL), a wholly owned subsidiary of Vishay. VAPL
transferred the business and benefit of all current contracts and engagements of
VAPL and all other assets and liabilities to VIAPL for the cash sum of $5.8
million. In addition, Siliconix, Inc. sold its ownership interest in Vishay
Japan KK to VIAPL for cash of $0.4 million. The transaction resulted in no gain
or loss to Siliconix and had no impact on operating income. Receivables and
payables which historically have been eliminated in consolidation as
intercompany balances now are reflected as receivables and payables from the
affiliated Vishay entities.
In September 1999, the Company entered into foreign currency forward
exchange contracts to manage exposure related to certain foreign currency
commitments and balance sheet positions. Foreign currency forward exchange
contracts designated as effective hedges of firm commitments are treated as
hedges for accounting purposes. Gains and losses related to qualified accounting
hedges of firm commitments are deferred and recognized in income when the hedged
transaction occurs. At October 3, 1999 the notional amount of outstanding
foreign currency forward exchange contracts was $15,433,000. All of the total
outstanding contracts at October 3, 1999 were to hedge yen denominated
commitments from customers in Japan.
Income tax expense for the first nine months of 1999 increased by $20.1
million from the same period of 1998 due to the increase in earnings before tax.
Liquidity and Capital Resources
Cash and cash equivalents decreased by $15.5 million from December 31,
1998. The Company has significantly reduced its debt by $40 million towards the
promissory notes to Vishay at the end of September 1999. Subsequent to the third
quarter, the Company repaid an additional $4.0 million of its debt. Furthermore,
the Company incurred expenditures in its normal course of business in the first
nine months of 1999, which includes capital, royalty payments, commissions, and
yearly management and employee bonuses. Management believes that the cash flow
from operations and existing lines of credit with Vishay will be sufficient to
meet its normal operating requirements and to fund its research and development,
capital and restructuring activities.
10
<PAGE>
Accounts receivable increased by $17.3 million or 49% from December 31,
1998 primarily due to the increase in revenues. Revenues for the third quarter
of 1999 were $101.3 million, compared with $76.6 million for the fourth quarter
of 1998.
Net affiliate accounts receivable/payable decreased by $7.7 million
from December 31, 1998 mainly due to the timing of cash received from
unconsolidated affiliates. Intercompany balances for Asia previously eliminated
during consolidation are now classified as Affiliate payables/receivables due to
the sale of the Asia subsidiaries.
Inventories increased by $0.7 million or 1% from December 31, 1998
primarily as a result of an increase in work-in-process inventories required to
support the increased capacities in production volumes called for by the
Company's higher revenue levels and for faster customer responsiveness as lead
times are shortened. Finished Goods and Raw Materials decreased by $2.7 million
and $1.1 million respectively from December 31, 1998 due to strong demand of the
Company's products as well as programs to reduce the amount of raw materials on
hand by moving to a more just-in-time delivery system.
Capital expenditures were $20.4 million in the first nine months of
1999, compared to $23.6 million in the same period of 1998. These expenditures
related to the continuation of the Company's capacity expansion plan as well as
the investment in equipment to support the Company's new technology products.
The new equipment has assisted in increased manufacturing capacities that the
company has experienced in the first nine months of 1999. Management believes
that these investments are essential to the future growth of the Company and its
ability to respond quickly to increases in customer demand. The Company expects
significant capital expenditures in the fourth quarter of 1999.
Current liabilities increased by $52.0 million or 50% from December 31,
1998 mainly due to the sale of the Asia subsidiaries. Intercompany balances for
Asia previously eliminated during consolidation are now classified as Affiliate
payables/receivables. At October 3, 1999, the Company has $3.0 million of
accrued restructuring costs.
Year 2000
The Company has a formal, structured Year 2000 Program and Plan and
is making consistent progress in executing against this plan. The Year 2000
Program is the responsibility of the Company CFO/Administrative VP who reports
to the Company's CEO. The Year 2000 project team includes all Company
facilities, locations, and organizations as necessary to ensure awareness and
readiness, and includes regular review and reporting on the status of Year 2000
readiness.
The Company's Year 2000 Plan includes Information Technology ("IT")
systems, Facilities and Utilities, Manufacturing equipment and IT interfaces,
and Supply chain management. The Company does not produce products with embedded
systems.
The Company has been Year 2000 ready since the end of the second
quarter of 1999. The Company has spent approximately $1.1 million to ensure Year
2000 compliance.
SAFE HARBOR STATEMENT
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: With the exception of historical information, the matters discussed
in this Form 10-Q are forward-looking statements that involve risks and
uncertainties including, but not limited to, economic conditions, product demand
and industry capacity, competitive products and pricing, manufacturing
efficiencies, new product development, availability of raw materials and
critical manufacturing equipment, the regulatory and trade environment, and
other risks indicated in filings with the Securities and Exchange Commission.
11
<PAGE>
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SILICONIX INCORPORATED
Date: November 12, 1999 By: /s/King Owyang
--------------
King Owyang
President and Chief Executive
Officer
By: /s/Jens Meyerhoff
-----------------
Jens Meyerhoff
Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> OCT-03-1999
<CASH> 22,194
<SECURITIES> 0
<RECEIVABLES> 73,644
<ALLOWANCES> 20,774
<INVENTORY> 50,141
<CURRENT-ASSETS> 213,590
<PP&E> 336,372
<DEPRECIATION> 187,856
<TOTAL-ASSETS> 371,506
<CURRENT-LIABILITIES> 154,968
<BONDS> 0
0
0
<COMMON> 100
<OTHER-SE> 191,832
<TOTAL-LIABILITY-AND-EQUITY> 371,506
<SALES> 273,176
<TOTAL-REVENUES> 273,176
<CGS> 164,271
<TOTAL-COSTS> 164,271
<OTHER-EXPENSES> 49,068
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 867
<INCOME-PRETAX> 58,970
<INCOME-TAX> (17,054)
<INCOME-CONTINUING> 41,750
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 41,750
<EPS-BASIC> 4.19
<EPS-DILUTED> 4.19
</TABLE>
